A certain bank uses the formula above to approximate the ann

Question

R = \frac{\frac{24F}{N}}{P+\frac{A}{12}} A certain bank uses the formula above to approximate the annual percentage rate R of a monthly installment loan. Which of the following is an equivalent form of the formula? A. R = \frac{24F(12P + A)}{(12N)} B. R = \frac{24F}{(12NP + AN)} C. R = \frac{2F}{(N(P + A))} D. R = \frac{288F}{(PN + AN)} E. R = \frac{288F}{(12NP + AN)} prep.JPG

GMATBLACKBELT · Answer

R=24F/N/P+A/12 

Solve the bottom first by making common denom.

P+A/12 --> (12P+A)/12.


Now solve futher: 24F/N*12/12P+A ---> 288F/(12PN+AN)


Ans E.

Salvetor · Answer

Does this type of easy question really comes in Gmat?

EMPOWERgmatRichC · Answer

Hi Salvetor,

It's interesting that you would call this "easy", since many Test Takers would not (almost 1/4 of the Users who attempted this question here got it wrong). The type of math involved in this question DOES show up in a variety of ways on the GMAT, so you'll likely find those other questions to also be "easy." However, the GMAT Quant section is not a traditional "math test" in the way that you might think and you'll face questions that are not really a test of "math abilities" at all (they'll be a test of organization, accuracy, attention-to-detail, thoroughness, pattern-matching etc.). As such, it's important to build up multiple 'skills' during your studies, and not just 'math skills.'

To answer your question though - "yes", you WILL see a bunch of questions in the Quant section that are pretty easy to answer.

GMAT assassins aren't born, they're made,
Rich

EMPOWERgmatRichC · Answer

Hi Salvetor,

It's interesting that you would call this "easy", since many Test Takers would not (almost 1/4 of the Users who attempted this question here got it wrong). The type of math involved in this question DOES show up in a variety of ways on the GMAT, so you'll likely find those other questions to also be "easy." However, the GMAT Quant section is not a traditional "math test" in the way that you might think and you'll face questions that are not really a test of "math abilities" at all (they'll be a test of organization, accuracy, attention-to-detail, thoroughness, pattern-matching etc.). As such, it's important to build up multiple 'skills' during your studies, and not just 'math skills.'

To answer your question though - "yes", you WILL see a bunch of questions in the Quant section that are pretty easy to answer.

GMAT assassins aren't born, they're made,
Rich

Salvetor · Answer

Thanks for replying EMPOWERgmatRichC. I kinda liked the quote you provided " GMAT assassins aren't born, they're made"

Pretty inspiring for me .

elk3418 · Answer

hmm i just plugged in a random number of 1 for every equation and got 288/13

when you plug that into answer choice E you get the same answer.

zero722 · Answer

convert denominator 12P +A /12 then 24F/N * 12P +A /12 gets you E.

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A certain bank uses the formula above to approximate the ann

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